The Indian economy has performed well compared to other South Asian countries, growing by 8.7% last year due to a restrained macro-economic approach. However, the path to a stronger rebound is going to be lengthier than expected due to global headwinds such as the slowing growth in high-income countries, and the global tightening of monetary policy and financial markets that have led to capital outflows in developing countries. The Reserve Bank of India has pared the country's growth projection for 2022-23 for the third time in December 2022, and the World Bank has downgraded India's economic growth forecast for FY23 to 6.5%.

The report discusses the mass layoffs and hiring freeze that could contribute to the weakening of India's growth engines and employment market in Q4 2022.